June $1,2025$ Bonds Payable with a par value of $$624,000,$ which are dated January $1,2025,$ are sold at $97$ plus accrued interest. They are coupon bonds, bear interest at $8\%($payable annually at January $1),$ and mature January $1,2035.($Use interest expense account for accrued interest.$)$

Dec. $31$

Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of discount. $($Use straight$-$line amortization.$)$

Jan. $1,2026$ Interest on the bonds is paid.

August $1,$ Bonds with par value of $$249,600$ are called at $101$ plus accrued interest, and retired. $($Bond discount is to be amortized only at the end of each year.$)$

Dec. $31$ Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of discount amortized.